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Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge. The products
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge. The products are then sold to a independent company that markets and distributes them to retail outlets. The following information was collected for the month of October Trees processed. 290 trees Production Sales: paper pencil casings 180,000 sheets 180,000 paper pencil casings 166,000 at $0.20 per page 176,500 at $0.24 per casing The cost of purchasing 290 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $15,500 Bismite's accounting department reported no beginning inventory. OA. $0.047 OB. $0.039 OC. $0.042 OD. $0.051
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